Latvia: consumer prices up in May 2017

Compared to May 2016, the average level of consumer prices increased by 2.8% in May 2017. Prices of goods grew by 2.6% and prices of services by 3.6%.

Compared to May 2016, the greatest pressure on the price changes was put by the rise in prices of food and non-alcoholic beverages, goods and services related to transport, goods and services related to housing, prices in miscellaneous goods and services group, and communication group, as well as decline in prices of clothing and footwear, according to data from the Central Statistical Bureau of Latvia.

During the year, prices of footwear fell by 11.1% and prices of garments by 1%.

Prices of goods and services related to housing went up by 2.9%. Increase was observed in prices of maintenance charges in multi-occupied buildings, heat energy and refuse collection, whereas drop was recorded in prices of natural gas.

Prices of goods and services related to transport grew by 3.9%, which was mainly because of the rise in prices of fuels for transport (by 8.7%) as well as prices of maintenance and repair of personal transport equipment. Reduction was registered in prices of passenger transport by road and passenger transport by air.

Within communication group, the average level of prices rose by 4.5%, which was mostly affected by the growth in prices of wired and wireless telephone services.

Within other commodity groups, the most significant growth was recorded in prices of tobacco products, motor vehicle insurance, pharmaceutical products, restaurant and cafe services, and articles for personal hygiene and beauty products.

Compared to April in May the average level of consumer prices did not change. Prices of goods diminished by 0.1% and prices of services increased by 0.4%.

In May the greatest pressure on the consumer price changes was put by the growth in prices of food and non-alcoholic beverages, health care, as well as by the decline in prices of clothing and footwear, alcoholic beverages and tobacco products.

Over the month, prices of food and non-alcoholic beverages rose by 0.5%. Prices of fresh fruit, coffee, bakery products, dried, salted or smoked meat, and potatoes had the most significant increasing impact on the price level within the food group. The most notable decline, in its turn, was observed in prices of fresh vegetables, poultry, chocolate and sugar.

Within the group of alcoholic beverages and tobacco products, the average price level dropped by 0.3%. Under the influence of discounts, prices of spirits, wine and beer reduced. The average level of tobacco product prices increased by 0.1%.

Influenced by the start of the sales campaigns, prices of footwear dropped by 6.2% and prices of garments fell by 0.1%.

The average level of health care prices rose by 0.6%, which was mainly affected by the growth in prices of pharmaceutical products.

Within other commodity groups, the most notable increase was recorded in prices of motor vehicle insurance, maintenance and repair of personal transport equipment. Reduction, in turn, was recorded in prices of articles for personal hygiene and beauty products, as well as fuels for transport. (BNN/Business World Magazine)